WELLINGTON: The most significant characteristic of the Korea-New Zealand Free Trade Agreement, which came into force, is that it was a “catch-up deal” rather than a new one, says New Zealand Ambassador to Korea Clare Fearnley.
“For us, it’s a bit unusual,” she told The Korea Times at her residence in Seoul on Dec. 15. “Normally, we are opening up a new market that no one else has enjoyed, but this time round, basically we are doing a catch-up FTA. We are catching up with all of the countries that have already concluded preferential trade agreements with Korea.”
Although nothing new was included in the trade deal, it still meant a lot of work over several years, and Fearnley was lucky ― her appointment as ambassador in Korea was made just after negotiations had been concluded and just before it was signed in March.
“The Korean negotiations were tough because there were many challenges to accommodate,” she said. “For example, we had a list of products that were excluded in the deal such as apples, or quantitative restrictions imposed on other products.”
Fearnley, who took up office in Seoul in January this year, has built her diplomatic career in the Asia Pacific region over a considerable time ― she was North Asia and trade director-general in 2014, and Asia-Pacific regional director-general and senior official for EAS/ARF/APE at the New Zealand Ministry of Foreign Affairs between 2011 and 2014.
She was also New Zealand representative and director of the New Zealand Commerce and Industry Office in Taipei between 2004 and 2007.
According to the New Zealand Chamber of Commerce in Korea, the trade deal is expected to reduce tariffs on New Zealand exports to Korea by 56 billion won in the first year. Overall, about 98 percent of tariffs on New Zealand’s exports to Korea will be eliminated.
Under the agreement, exporters from both sides are expected to benefit from two rounds of tariff cuts ― the first on Sunday and a second round on Jan. 1, 2016.
“It was estimated that there would be a $6 billion benefit for Korea by 2030 and $4.5 billion for New Zealand,” the ambassador said. “Given the scale of the economies, it is not a huge amount, but I think it is useful and valuable.”
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